First Quarter Compliance Checklist

As the first quarter of the year comes to a close, business owners often ask me how they can best keep current with the various legal and regulatory obligations required by the federal and state governments.?

From filing annual reports to meeting tax deadlines and maintaining good standing, it can seem overwhelming. To help, here is a handy checklist for the first quarter.

Annual Reports

One of the primary obligations for many businesses is filing annual reports with the appropriate state authorities—typically, the Secretary of State. Depending on the business’s formation date and the deadlines set by the state of formation, the annual (or biennial) report requires companies to update vital information about the company’s address, activities, ownership, and legal structure. The deadlines for annual report filings vary by state, so checking your local requirements is crucial. Failure to file annual reports on time can lead to penalties and jeopardize your business’s good standing.

Following are some of the states with report deadlines coming up:

C Corporations

• Georgia April 1
• Iowa April 1
• Maryland April 15
• Mississippi April 15
• Montana April 15
• New Hampshire April 1
• Washington, DC April 15

Limited Liability Companies (LLCs)

• Georgia April 1
• Iowa April 1
• Maryland April 15
• Mississippi April 15
• Montana April 15
• Nebraska April 1
• New Hampshire April 1
• North Carolina April 15
• Washington, DC April 15

For a complete list of annual report deadlines, see CorpNet’s Annual Report List by State for LLCs and Corporations .

Tax Deadlines

Tax compliance is a significant aspect of first-quarter obligations for businesses. Here are some key tax-related deadlines to mark on your calendar:

• Income Tax Filing: Corporations, LLCs, and other business entities must file income tax returns by the deadline—April 15th. S Corporations should have filed by March 15th. However, make sure to confirm this deadline with your tax advisor.
• Estimated Tax Payments: Businesses that anticipate owing taxes for the current year are required to make quarterly estimated tax payments. The first installment is typically due on April 15th. For S Corps, the deadline was March 15th. Ensure timely submission of estimated tax payments to avoid penalties and interest charges.
• State Tax Filings: In addition to federal taxes, businesses must comply with state tax requirements. This includes filing state income tax returns and paying any applicable state taxes. Be aware of the specific deadlines set by your state’s taxing authority.

Again, corporations looking to file taxes as an S Corp had to file IRS Form 2553 by March 15th. However, the Internal Revenue Service (IRS) may accept the filing after the deadline if you can show “reasonable cause ” for filing late.

Beneficial Ownership Information (BOI)

The Corporate Transparency Act is new and critically important. Congress passed it in 2021 to combat illicit financial practices. Under this law, many businesses operating in the U.S. must report information about their “beneficial owners” (people who own at least 25% of the company) or anyone who “exercises substantial control over the company.” ?

Companies must file the Beneficial Ownership Information (BOI) report to comply.

• Who needs to report? According to the Financial Crimes Enforcement Network (FinCEN), a federal website, the companies that must report fall into two broad categories: “Domestic reporting companies?are corporations, limited liability companies, and any other entities created by…filing a document with a secretary of state or any similar office in the United States.” “Foreign reporting companies?are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by…filing a document with a secretary of state or any similar office.” Sole proprietorships and 23 specific types of companies are not required to file a BOI report.?
• When is it due? Reporting deadlines depend on the formation date of the company. Existing businesses formed before January 1, 2024, must file by January 1, 2025.? New companies formed on or after January 1, 2024, must file within 90 days of formation.? Businesses formed on or after January 1, 2025, must file within 30 days of formation.
• What’s required??

A company has to report:?

• It’s legal name and any trade names, such as any DBAs.?
• Current address of the principal place of business. Foreign companies need to report the address of where they conduct business in America.
• State of formation.
• Taxpayer identification number.

Beneficial owners have to report:

• Their name.
• Date of birth.
• Residential address.
• An identifying number from a document like a driver’s license or passport.
• How to file: BOI reports are submitted through FinCEN’s secure filing system , or CorpNet can file for you.
• Updates and amendments: Company or ownership information changes must be filed within 30 days.
• Penalties: Failure to file may lead to civil penalties of up to $500 per day and criminal penalties, including imprisonment and fines.

Good Standing

Meeting corporation deadlines, filing completed forms, and paying the required fees are crucial for your business’s reputation and legal status. To stay in good standing, you must fulfill all regulatory requirements. For help keeping your company on the right track, contact the experts at CorpNet. We make it our business to keep your business heading in the right direction.

Photo by?Tero Vesalainen ?from?Freerange Stock